- 8 - respondent contends that the availability of qualified attorneys to handle cases such as petitioner's was not limited, and that petitioner has failed to establish the existence of any special factor that would warrant departure from the statutory cap. Accordingly, respondent argues that an award of attorney's fees in this instance should be calculated at the adjusted statutory rate of $104 per hour.7 Respondent also disputes petitioner's claims for the accountants, Victor Harris and Pamela Zimmerman. Respondent argues that since the compensation rate for attorneys cannot 7 This Court uses the Consumer Price Index (CPI) for all urban consumers to adjust the $75 hourly limit for increases in the cost of living. Cassuto v. Commissioner, 93 T.C. 256, 273 (1989), affd. in part and revd. in part 936 F.2d 736 (2d Cir. 1991). We have held that 1981 is the appropriate base year for calculating cost of living increases under sec. 7430(c)(1)(B)(iii). Bayer v. Commissioner, 98 T.C. 19, 23 (1992); Cassuto v. Commissioner, supra at 269. Nevertheless, the Court of Appeals for the Fifth Circuit, to which this case is appealable, has held that the appropriate base year for calculating cost of living increases is Jan. 1, 1986. Heasley v. Commissioner, 967 F.2d 116, 125 (5th Cir. 1992), affg. in part and revg. in part T.C. Memo. 1991-189. We follow that holding here. Golsen v. Commissioner, 54 T.C. 742, 756-758 (1970), affd. 445 F.2d 985 (10th Cir. 1971). We note that the $104 hourly rate utilized by respondent apparently represents the $75 statutory rate, adjusted by a 39- percent increase in the C.P.I. from Jan. 1986 to July 1995. The record indicates that a portion of the fees claimed by petitioner was billed after July 1995. Nevertheless, petitioner's objection to respondent's position relates only to the applicability of the statutory cap, and not to the calculation of the $104 amount.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Next
Last modified: May 25, 2011